Virtual Pipeline Market is expected to reach US$ 3.02 Billion by 2031.

Global Virtual Pipeline Market Forecast to 2031: Key Insights

According to our latest study on "Global Virtual Pipeline Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Fuel Type, Transportation Model, Application, and Geography," the market was valued at US$ 1.99 billion in 2024 and is expected to reach US$ 3.02 billion by 2031. The virtual pipeline market size is estimated to register a CAGR of 6.2% during 2025–2031. Hydrogen in virtual pipeline systems acts as a virtual pipeline market trend.

Hydrogen is becoming more recognized as a multi-purpose energy carrier for industrial processes, rocket fuel, fuel cells to generate electricity, and vehicles. With a ramping-up of decarbonization efforts across the world, natural gas power plants are looking at hydrogen as a co-firing fuel and a potential replacement for natural gas. Hydrogen's unique aspect is the ability to store energy in an indirect way, allowing cleaner power generation and the incorporation of renewables.

 Virtual Pipeline Market

To facilitate safe transportation, virtual pipeline systems are emerging with innovative storage and containment technologies. For example, on June 24, 2024, Luxfer Gas Cylinders unveiled the G-Stor Hydrosphere. This new series of Multiple Element Gas Containers (MEGCs) was purpose-built for the safe, sustainable transportation of hydrogen in a virtual pipeline system. The G-Stor system was introduced at the World Hydrogen Summit in Rotterdam and provides businesses more options for accessing hydrogen for their engineering applications as hydrogen economies grow globally.

This trend is part of a broader effort to incorporate hydrogen into the virtual pipeline sector. Virtual pipelines offer the flexibility, scalability, and safety necessary to transport hydrogen directly from production to end-use, particularly in situations where dedicated hydrogen pipeline infrastructure is not available or is still in development. As demand for hydrogen grows from fuel cells, industrial facilities, and power generation, virtual pipeline systems support a critical interim and complementary logistics solution.

Growing Demand for Innovative Solutions Drives Global Virtual Pipeline Market Growth

Seasonal peak demand for electricity presents significant challenges in providing a reliable and flexible supply of natural gas, especially in regions with varying energy requirements or supplies under duress. Traditional pipeline systems, in many cases, are unable to respond quickly enough to short-term spikes in demand, which are often caused by weather extremes or supply interruptions. A virtual pipeline system is an approach to addressing this challenge with scalable, modular solutions that allow for dynamic changes in the volume of gas delivered during peak consumption periods, ensuring a reliable energy supply and operational reliability for critical users.

A prime example is Energía Solar Cachanilla (ESCO), a company with over 15 years of experience providing electrical energy in Mexico's Baja California Peninsula, a region characterized by high economic activity and extreme weather conditions. To meet the projected power deficit during the summer of 2020, ESCO required a flexible energy solution capable of operating in adverse conditions, including high temperatures, low rainfall, and seismic activity. Additionally, supply disruptions affected access to conventional natural gas pipelines. Aggreko responded by deploying 62 natural gas generators across two locations, operating 24/7 to generate 48 MW of power. The fuel was supplied via two routes: a conventional gas pipeline and a virtual gas pipeline, allowing ESCO to maintain reliable power during peak demand despite fuel supply challenges.

The growing demand for innovative solutions in the peak season to supply natural gas propels the virtual pipeline market growth.

Global Virtual Pipeline Market: Segmental Overview

By fuel type, the market is segmented into LNG, CNG, and others. The CNG segment held the largest virtual pipeline market share in 2024. Based on transportation model, the virtual pipeline market report is divided into tube trailer, tanker trucks, rail tank cars, and marine vessels. The tube trailer segment dominated the virtual pipeline market share in 2024. As per application, the market is segmented into power generation, industrial fuel supply, transport fueling, residential, commercial, mining and construction, and others. The power generation segment is expected to dominate the market over the forecast period.

CNG plays a vital role in the virtual pipeline market by providing a flexible, efficient way to deliver natural gas without fixed pipelines. Virtual pipelines transport CNG to locations where traditional infrastructure is unavailable or impractical. Companies like CORE Automated Fueling Solutions offer modular platforms with real-time monitoring to supply critical sectors such as oil and gas, utilities, and manufacturing. Galileo Technologies expands access by connecting consumers to multiple gas sources beyond conventional pipelines. In 2023, Quantum Fuel Systems strengthened the market by supplying advanced virtual pipeline trailers to VoltaGrid, boosting CNG delivery and clean energy networks. Overall, CNG virtual pipelines enhance energy access, security, and support diverse industries with scalable, cost-effective solutions..

Global Virtual Pipeline Market Analysis: Competitive Landscape and Key Developments

The global virtual pipeline market report highlights the factors driving market expansion and the key developments of prominent players. Stabilis Solutions Inc; Kinder Morgan Inc; Hexagon Agility (Hexagon Composites ASA); Galileo Technologies S.A.; Fiba Technologies Inc; Bayotech, Inc.; NG Advantage LLC; CNG Services Limited; Air Products and Chemicals, Inc.; and Gas Malaysia Virtual Pipeline Sdn. Bhd. are among the prominent players profiled in the global virtual pipeline market report. Market players focus on new product launches, expansion, diversification, and acquisition strategies, which enable them to capitalize on prevailing business opportunities.

• In November 2024, Hexagon Agility (a leading global provider of clean fuel solutions for commercial vehicles and bulk gas transportation) expands its assembly and installation capacity in Rialto, California. This is in response to the increasing demand for compressed (renewable) natural gas (CNG/RNG) within the heavy-duty truck and refuse segments.
• In April 2024, Stabilis Solutions, Inc., a leading provider of clean fueling and power production, storage, and last mile delivery solutions for many of the world's most recognized, high-performance brands, announced the extension of its LNG supply agreement with a leading global provider of on-demand industrial power solutions, together with an update on Stabilis' role as a solutions provider of choice for peak load, intermittent, distributed, and emergency relief power needs across multiple industries.

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